The mission of the Ulster County Comptrollers Office is to serve as an independent agency of the people and to protect the

public interest by
monitoring County government and to assess and report on the degree to which its operation is economical, efficient and its financial condition
sound.







ELLIOTT AUERBACH PHONE: (845)340-3529
COUNTY COMPTROLLER eaue@co.ulster,ny.us
244 FAIR STREET www.youreyesonulster.com
KINGSTON, NEW YORK 12401

FOR IMMEDIATE RELEASE

To IDA Or Not To IDA? Here Are The Questions

Comptrollers Report Highlights Best Practices and Areas Needing Attention

KINGSTON, NY (October 8, 2014).Ulster County Comptroller Elliott Auerbach has released a report
which analyzes the effectiveness of Industrial Development Agencies (IDAs) in spurring economic
development, and making recommendations for Ulster Countys IDA (UCIDA).

The report provides a survey of recent scholarship and studies on the impact of IDAs, which range from
opinions that the tax abatement and financing benefits provided by IDAs have no measurable benefits to
the opinion that they are important tools in increasing the tax base and spurring job growth.

The first goal of the report is to educate the public and lawmakers as to what the issues are, so that they
can engage in a meaningful debate as to how to address them, said Auerbach. While economists have
drawn different conclusions from their data over the years, the studies present good baseline information
which can be used to maximize the effectiveness of IDAs for all taxpayers, and thats the most important
thing.

The report provides statistics about the UCIDAs current projects and practices. The tax abatement issue
is a controversial one here in Ulster right now, Auerbach acknowledges, and there are important
arguments to be considered on all sides of that debate. But, he points out, the UCIDA is on the cutting
edge of many best practices in this area, and their record of approving projects which meet the job
promises made by applicants is 97% - which is exceptional.

Among its recommendations for changes to UCIDA policy are the recommendation that projects receive
IDA benefits only where they would not proceed but for the IDA incentives, that there be increased
vetting of project fiscal projections, and that local government or public concerns be more heavily weighted
as part of the review and approval process.

The report, which was released to IDA Chair Mike Horodyski and the leadership of the Legislative
Economic Development Committee prior to its public release, notes that there are competing pieces of
state legislation pending in Albany which would change the IDA guidelines statewide. Lawmakers, the
IDA, and the public, Auerbach notes, should comment on that legislation, because changes made at the
state level would take some decisions out of the hands of local IDAs. Our hope is that weve informed the
public discourse how that discourse plays out is up to the taxpayers of Ulster, their representatives, and
the UCIDA.

The report can be found at www.ulstercountyny.gov/comptroller/news-media
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NEWS FROM THE OFFICE OF
ULSTER COUNTY COMPTROLLER
ELLIOTT AUERBACH